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1923  STATE  OF  ILLINOIS 

<U3P'  Department  of  Trade  and  Commerce 

DIVISION  OF  SMALL  LOANS 

MINIMUM  REQUIREMENTS 


OF 

LICENSEES 


As  Amended  September  1,  1923 


JUN  2  9  1927 

UNIVERSITY  m  ILUNOI? 
LEN  SMALL,  Governor 


CLIFFORD  IRELAND 

Director 

FRANK  E.  O'BRYANT 

Assistant  Director 


[Printed  by  authority  of  the  State  of  Illinois. j 


Schnepp  &  Barnes,  Printers 
Springfield,  III. 
3497—500. 


STATE  OF  ILLINOIS. 


DEPARTMENT  OF  TRADE  AND  COMMERCE. 

DIVISION  OF  SMALL  LOANS 

In  accordance  with  the  provisions  of  an  Act  entitled  “An  Act 
to  license  and  regulate  the  business  of  making  loans  in  sums  of 
three  hundred  dollars  ($300)  or  less,  at  a  greater  rate  of  interest  than 
seven  (7)  per  centum  per  annum,  etc.,”  approved  June  14,  1917,  in 
force  July  1,  1917,  the  Department  of  Trade  and  Commerce,  for  the 
purpose  of  obtaining  uniformity  in  the  records  of  licensees  and  to 
facilitate  any  examination  of  such  records,  hereby  establishes  the  fol¬ 
lowing  minimum  requirements: 

(1)  CASH  BOOK. 

Each  and  every  licensee  shall  keep  a  hound  book,  or  if  preferred 
a  loose  leaf  record,  provided  sheets  are  numbered  consecutively,  of 
columnar  cash  book  or  cash  book  journal  type,  which  book  shall  be  a 
record  of  original  entry,  in  which  all  transactions,  entailing  either  the 
receiving  or  disbursement  of  any  amount  whatsoever,  shall  be  entered. 
Separate  columns  must  be  provided  for  amounts  received  as  payments 
on  principal  and  interest  and  any  amounts  which  may  be  collected  from 
clients  for  filing  and  recording,  with  any  public  officer,  any  instru¬ 
ment  securing  the  loan,  or  any  attorney  fees  permitted  by  law  to  be 
collected  for  foreclosure. 

The  cash  book  must  also  plainly  show  all  amounts  paid  out  as 
Joans  to  clients  and  the  actual  amount  paid  for  filing  or  other  fees, 
which  may  be,  according  to  lawT,  chargeable  to  any  client.  A  record 
of  the  receipt  and  disbursement  of  any  and  all  such  fees  shall  be  kept 
in  the  cash  book  and  on  record  card.  The  payment  of  said  fees  shall 
be  entered  on  loan  register. 

The  record  of  all  payments  of  principal  and  interest  must  lie 
entered  daily  on  the  cash  book  or  report  sheet  numerically,  irrespect¬ 
ive  of  the  time  of  payment  that  day.  For  example,  if  interest  or 
principal  is  paid  on  a  certain  date  on  loans  Nos.  10,  9,  37  and  26,  the 
entries  on  the  cash  book  or  report  sheet  should  be  9,  10,  26,  37,  in 
order  to  facilitate  checking. 

In  fact  the  cash  book  must  be  a  permanent  record  of  all  details  of 
income  and  disbursements  which  are  necessary  as  a  basis  for  deter¬ 
mining  entries  to  individual  accounts  of  clients  or  the  business  of  the 
licensee  as  a  whole. 


(2)  ACCOUNTS  WITH  CLIENTS. 

Individual  accounts  must  be  kept  by  each  licensee  with  each 
client,  which  accounts  may  be  kept  on  card  or  in  a  loose  leaf  or  bound 
ledger.  Each  account  must  show  plainly  the  name  and  address  of  the 
client ;  the  loan  number ;  the  actual  amount  loaned  and  date  loan  is 


made;  the  rate  of  interest  charged;  the  terms  of  repayment;  the  nature 
of  the  security,  if  any;  and  such  other  information  in  regard  to  the 
nature  and  place  of  employment,  phone  numbers,  etc.,  as  may  be 
necessary. 

Account  forms  used  must  provide  separate  columns  for  payments 
on  principal,  interest,  and  any  other  charges  which  may  be  by  law 
chargeable  to  the  client,  and  accounts  must  be  kept  in  such  a  manner 
as  to  show  at  once,  on  inspection,  the  balance  due  on  principal  and 
provide  data  for  determination,  easily  and  rapidly,  of  the  amount  of 
interest  which  may  be  due  or  accrued. 

Each  account  must  show  plainly  items  as  per  enclosed  specimen. 
(See  Short  Loan  Form  No.  2.) 


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Each  and  every  loan  made  to  one  and  the  same  person  shall  be 
kept  separate  and  distinct  from  all  subsequent  loans  to  such  person. 

(3)  FILE  OF  ORIGINAL  PAPERS. 

An  envelope  or  other  file  must  be  maintained,  in  which  shall  be 
filed  all  the  original  notes,  chattel  mortgages,  wage  assignments,  power 
of  attorney  or  other  evidences  of  indebtedness  or  security,  which  have 
been  signed  by  the  client. 

All  instruments  taken  in  connection  with  any  certain  loan  should 
bear  its  respective  loan  number. 

This  file  shall  be  indexed  in  the  same  manner  as  the  individual 
accounts  mentioned  in  paragraph  (2)  hereof,  so  that  all  papers  in 
connection  with  any  loan  may  be  checked  with  the  corresponding 
individual  account. 

(4)  LOAN  REGISTER. 

Each  licensee  shall  keep  a  book  called  “Loan  Register/’  or  its 
equivalent,  which  shall  disclose  the  account  number,  date,  name  of 
borrower,  post  office  address,  the  nature  of  the  security,  maturity  of 
the  obligation,  the  rate  of  interest,  the  amount  of  the  loan,  interest, 
fees,  date  of  final  payment,  total  of  all  payments  and  by  whom  made, 
which  loan  register,  or  the  equivalent  thereof,  shall  be  kept  numerically 
by  numbers  of  loans  in  the  order  made.  This  register  shall  have 
proper  columns  separating  the  various  items  required  to  be  shown 
thereon. 

(5)  INDEX. 

Each  licensee  shall  keep  a  card  or  envelope  index  system  on  which 
all  loans  to  each  individual  must  be  kept  numerically  as  to  date  made, 
showing  loan  number,  date  of  loan,  amount  of  loan,  and  date  of  final 
payment.  (See  form  one.) 


(4912-500)  ll*4gjfc»» 


S.  L.  Form  1 


NO. _  _ 

NAME  _ _ 

STREET  No.  City 


Loan  No. 

Date. 

Amount  of  Loan. 

Date  of  tinal 
payment. 

• 

• 

* 

4 

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♦ 

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8 


(6)  ADDITIONAL  RECORDS,  FORMS  OF  NOTES,  MORTGAGES, 

ASSIGNMENTS,  ETC. 

In  addition  to  the  records  mentioned  in  paragraphs  1,  2,  3  and  4, 
each  licensee  may  keep  such  card  or  other  indexes,  indexed  as  to 
location  of  client,  due  date  of  loan,  or  other  information  which  may 
he  considered  necessary. 

No  form  of  note,  mortgage,  assignment,  power  of  attorney,  or 
other  evidence  of  indebtedness,  shall  provide  for  a  greater  rate  of 
interest,  greater  amount  of  charges  for  attorney  fees,  or  any  other 
charges,  than  are  provided  by  law,  nor  shall  any  such  paper  contain 
any  statement  or  provision  contrary  to  or  tending  to  nullify  or  enlarge 
any  provision  of  the  Act  above  referred  to. 

The  statement  of  loan  delivered  to  client  at  the  time  of  making 
loan  may  be  in  pass  or  receipt  book  form  or  plain  statement  form, 
provided  only  that  such  statement  must  contain  all  information  in 
regard  to  the  loan,  including  a  copy  of  section  2  of  the  law,  as  pre¬ 
scribed  in  section  3  of  the  same. 

All  books,  accounts,  forms,  etc.,  referred  to  above  shall  be 
printed,  written,  or  executed  in  the  English  language. 

INTEREST. 

All  interest  shall  be  computed  on  the  basis  of  30  days  to  each  of 
the  12  months  constituting  the  year. 

No  interest  shall  be  collected  on  deferred  payments.  No  pay- 
„  ments  shall  be  accepted  on  balance  due,  unless  interest  is  paid  to  date. 

Interest  shall  be  computed  on  the  exact  amount  of  money  for  the 
l  actual  number  of  days  the  loan  is  in  force.  For  example: 

A  represents  borrower;  B  the  loan  company.  On  July  1,  1923, 
A  borrows  $25  at  3 interest  a  month.  He  makes  repayment  of 
loan  in  full  July  15,  1923.  B  shall  be  entitled  to  receive  interest  from 
July  1,  1923,  to  July  15,  1923,  a  period  of  14  days.  The  interest  on 
$25  for  14  days  being  41  cents,  B  shall  receive  on  July  15  the  sum 
of  $25  plus  accrued  interest ;  the  grand  total  of  repayment  of  prin¬ 
cipal  and  interest  being  $25.41. 

In  each  and  every  case,  where  chattel  mortgage  (or  bill  of  sale) 
is  acknowledged  or  recorded,  the  actual  fee  for  the  same  may  be 
paid  by  the  borrower. 

The  Department  of  Trade  and  Commerce  reserves  the  right  at 
any  time  hereafter  to  alter,  modify  or  add  to  the  foregoing  require¬ 
ments  as  the  exigencies  of  the  administration  of  the  law  require. 

Done  at  Springfield,  Illinois,  this  first  day  of  September,  A.  D. 
1923. 

Clifford  Ireland, 
Director  of  Trade  and  Commerce . 


THE  LIBRARY 

JUN  2  9 


